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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: EPS who wrote (28747)	10/28/1999 2:23:00 PM
From: DJBEINO	Respond to of 42771

some broker made a "Positive Revision in Projected Earnings "

To: EPS who wrote (28747)	10/28/1999 2:24:00 PM
From: Spartex	Read Replies (1) \| Respond to of 42771

Novell's CEO Talks Turnaround Tuesday October 26, 1999 - 01:50PM Eric Schmidt , CEO of Novell (NOVL) ,holds a computer- science Ph.D. and spent some time at Sun Microsystems (SUNW), where he was the chief technology officer and a key developer of the Java software language. Schmidt left Sun two years ago to take the reins at a Novell, a networking- software firm experiencing depressed revenues, an unfocused product line, and a disheartened workforce. Schmidt has staged an impressive turnaround: Novell is profitable, its stock price doubled, and the company is once again viewed as a worthy competitor to Microsoft (MSFT). He talked to money.net?s columnist Mandy Walmac about how investors may spot similar turnarounds before Wall Street takes note, and throws in a few plugs for some of Novell?s new products that will improve internet navigation. money.net: For our members?who are avid investors?are there clues you use to spot a firm that has been struggling and is now turning things around? Are there signs other than a rising stock price, at which point it might be too late to make big profits, to look for? Eric Schmidt: I think it's important to consider if a company is part of the conversation that defines the direction of its particular part of the marketplace. Has the company again become relevant to the most important technology and market trends? A big factor in the renewed growth of Novell, for example, was our ability to move our directory technology and server platform to center stage in the Internet. m.n: Novell has a history of identifying companies that help its business grow. Your partners include such familiar names as AT&T (T) , IBM, Lotus, Oracle (ORCL), and Texas Instruments (TXN), and recently Novell invested in Whittman-Hart (WHIT). What kind of criteria, in addition to the fact that they have a product or service you need, do you use to identify a firm Novell is interested in that can help money.net?s members find good companies to invest in? Do you look for a strong management team? A company that?s leading its field? E.S.: Both of those factors are important. In addition, at Novell we seek out partners with compatible software and hardware solutions, or expertise such as systems integration and consulting. m.n: You're credited with engineering an impressive turnaround at Novell. We're guessing it was a more complicated affair than has been generally reported. What were the key ingredients? E.S.: We faced three main challenges. First, we had to realign our business to meet the realities of the marketplace. Second, we needed to focus our strategy and product development on the company's core strengths in directory- based networking. Third, we needed to establish a disciplined, fast-moving and results-oriented culture that would allow us to bring new products to market in an accelerated time frame. Our solid financial performance, with eight straight profitable quarters, reflects our progress in all these areas. m.n: Define "meBusiness," a concept of Novell's that's been in the news recently. E.S.: In the first wave of online growth, people focused on the basics of learning how to access and navigate the Internet. Novell is ushering in the next wave, where relationships between online businesses and consumers are paramount and the consumer is in control of his or her personal information. This new consumer-focused era on the Internet is what we call meBusiness. m.n: What are other products or types of products can help us go about our "meBusiness?" E.S.: Directory technology allows e-businesses to manage where you can go, what you can do, and who you are on the Internet. With a directory infrastructure in place, there is opportunity for all kinds of Internet services and applications that can be personalized for every user. An example would be a retail site or travel service that can make recommendations based on your past preferences and affinity with other customers, or an rental service that requires no downloads and charges you only for your precise period of usage. m.n: How does your new product digitalme fit in? E.S.: digitalme (www.digitalme.com) is a new identity management service that brings a greater level of convenience, freedom and control to the Internet. digitalme makes life easier on the Internet for consumers and allows them to take control of how their personal information is shared, used and maintained on the Internet. m.n: What characteristics do you look for in your technology staff? E.S.: We look for very smart people who are happiest when working hard on challenging projects and achieving measurable results. There is no substitute for talent, nor for strong commitment. m.n: Is there a word or phrase you hate to hear your technicians use? A word or phrase you love? E.S.: The words we love to hear are "directory," or "directory- enabled," because they describe the basis for a whole spectrum of creative new networking applications that originate with our teams at Novell. The words we abhor are "the old way" or "the old days," as they recall a time before the Internet changed everything and Novell became a growth company again. m.n: Our readers are always on the lookout for a good book about the tech biz. Is there a book you've read recently that you recommend? E.S.: Patrick Lencioni's The Five Tempations of a CEO is an excellent book that provides insight into the challenges leaders face in managing for results. The model it proposes is required reading for my staff. m.n: Do you think there were some investing lessons we learned in the 90's that can help us in the year 2000 and beyond? E.S.: No doubt we will look back on the 1990s as the time when the Internet first made its impact on financial markets and every other area of business and society. This revolution is still in its early stages, however, and it's extremely difficult to predict exactly how they Internet will continue to grow. The challenge for the investor is to identify those companies with strategies and business models designed for long-term viability and growth. money.net